Finance
Europe Should Mobilise Pensions for Capital Markets, Swedish Minister Says
Published by Global Banking & Finance Review®
Posted on April 10, 2026
2 min readLast updated: April 10, 2026
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Sweden’s financial markets minister Niklas Wykman urged EU states to adopt funded pension systems like those in Sweden, Denmark, and the Netherlands to fuel capital markets, noting these countries hold a disproportionate share of EU pension assets according to OECD data.
Swedish Minister Urges EU to Mobilise Pensions for Capital Market Growth
EU Capital Markets and Pension System Reform
By Anne Kauranen
Nordic Model as an Example for Europe
HELSINKI, April 10 (Reuters) - More European countries should foster European capital markets by introducing funded pension systems similar to those in the Nordic countries and the Netherlands, Sweden's minister for financial markets said on Friday.
The European Union is pushing towards a Capital Markets Union to create a single European market instead of 27 national ones in order to reduce European companies' dependency on national banks and give them cross-border access to equity and capital markets funding.
Minister Wykman's Call to Action
"You could have a union, but it's not worth very much if you don't have capital in the market," the Swedish minister Niklas Wykman told an audience at the Nordic region's biggest bank Nordea in Helsinki.
Funded Pension Systems in the Nordics and Netherlands
Sweden, Finland, Denmark and the Netherlands have partially funded pension systems in which a part of people's pension contributions are saved and invested in financial assets to pay future pensions from accumulated assets and their investment returns.
"We need to convince our partners throughout Europe to have a less pay-as-you-go system and a more funded pension system," Wykman said, calling for larger EU member states to reform their systems.
Pension Asset Accumulation in the EU
OECD Data Highlights Disparities
HIGHEST ACCUMULATED PENSION ASSETS
Wykman cited OECD data to show that Sweden, Denmark and the Netherlands combined held approximately two-thirds of the EU's accumulated pension assets, while larger EU countries Germany, France, Italy and Spain, which have pay-as-you-go pension systems, combined held only 22% between 2022 and 2024.
EU Single Market for Financial Services
Commissioner Albuquerque's Perspective
Speaking at the same event, EU Financial Services Commissioner Maria Albuquerque called for the quick adoption of "a true single market" for financial services, which the EU governments have agreed to conclude negotiations on by the end of this year in the face of global turmoil.
Urgency for Reform
"The longer we wait, the further our competitors move ahead, and the smaller Europe becomes in the rear-view mirror," she said.
(Reporting by Anne Kauranen in Helsinki: Editing by Sharon Singleton)
Key Takeaways
- •Nordic and Dutch funded pension systems boost capital market depth and hold over two‑thirds of EU pension assets, while Germany, France, Italy and Spain hold just 22%
- •Funded pension systems correlate with high pension‑assets‑to‑GDP ratios (e.g. Denmark ~206%, Netherlands ~151%, Sweden ~116%), versus under 20% in countries reliant on pay‑as‑you‑go systems
- •Capital Markets Union and Pan‑European Personal Pensions (PEPPs) are structural EU initiatives intended to deepen integration and diversify funding sources, complementing funded pension reforms
Frequently Asked Questions about Europe should mobilise pensions for capital markets, Swedish minister says
1Why does the Swedish minister advocate for funded pension systems in Europe?
The Swedish minister believes funded pension systems boost capital markets by accumulating investment assets, making European markets stronger and less reliant on traditional banks.
2What is the EU Capital Markets Union?
The EU Capital Markets Union is an initiative to integrate national capital markets into a single European market, providing easier cross-border access to funding.
3How do Nordic pension systems differ from those in most large EU countries?
Nordic pension systems save and invest a portion of contributions in financial assets, while many large EU countries use pay-as-you-go models without asset accumulation.
4Which EU countries hold the largest pension assets?
Sweden, Denmark, and the Netherlands together hold around two-thirds of the EU's total accumulated pension assets, according to OECD data.
5What is the urgency for Europe to reform pension systems and capital markets?
EU officials warn that further delays in reforming and integrating financial markets could leave Europe lagging behind global competitors.